JAMB Economics Past Questions & Answers - Page 190

946.

A supply curve is positively sloped because

A.

Supply always exceeds demand

B.

Demand always exceeds supply

C.

Price is an incentive to consumers

D.

Price is an incentive to producers

Correct answer is D

A supply curve is positively sloped because as the price of a commodity increase in the market, the amount supplied increases. Producers will be willing to supply more of their products as prices increase.

947.

A major assumption in cardinal utility theory is that

A.

Utility is measureable

B.

Utility is not measurable

C.

Total utility equals marginal utility

D.

Total utility is constant

Correct answer is A

One of the assumptions of the cardinal utility approach is that money must measure the same amount of utility under all circumstances.

948.

The demand curve for a luxury good is

A.

Negatively sloped

B.

Parallel to the price axis

C.

Parallel to the quantity axis

D.

Positively sloped

Correct answer is D

The demand for a luxury good upward and positively sloping. Meaning the demand increases as the price increases.

949.

A movement along the same demand curve is caused by the

A.

Price of the product

B.

Price of other products

C.

Income of the consumer

D.

Taste of the consumer

Correct answer is A

A change in price leads to a movement along the demand curve and is referred to as a change in quantity demanded.

950.

The privatization exercise in Nigeria is a move towards a

A.

Mixed economy

B.

Subsistence economy

C.

Market economy

D.

Command economy

Correct answer is C

Privatization is geared towards a market economy in which economic decisions and the pricing of goods and services are determined by the supply and demand of goods and services. In this market economy, private individuals are major players and are actively involved in the production process.